15 · Apr · 2020
PETRONAS Successfully Prices US$6 Billion Bond Offering
Kuala Lumpur, 15 April 2020 - PETRONAS successfully priced a US$6 billion multi-tranche senior bond offering, comprising US$2.25 billion 10-year, US$2.75 billion 30-year and US$1 billion 40-year conventional notes.
The 10-year conventional notes were priced 290 bps over the 10-year treasury to yield 3.65%, the 30-year conventional notes were priced to yield 4.55% and the 40-year conventional notes were priced to yield 4.80%. There were robust demands for the bonds with the order books reaching US$37 billion at the time of pricing, which was one of the largest order books by an Asian issuer ever. The 6.2x oversubscription ratio reflects the market’s confidence in PETRONAS’ credit strength which was recently affirmed at A2 by Moody’s and A- by S&P, both with stable outlooks.
The issuance represents PETRONAS’ return to the international US dollar bond markets since its US$5 billion multi-tranche offering in March 2015, and is part of the on-going prudent capital management efforts which also effectively extend its debt maturity profile.
The proceeds will be used by PETRONAS, or its subsidiaries and associated companies, for refinancing, capital expenditures, working capital and general corporate purposes.
BofA Securities and Citigroup acted as Joint Global Coordinators and Joint Bookrunners, together with HSBC, Maybank and MUFG as Joint Bookrunners.
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